Net Income Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Net Income Per Share

NOTE G – Net Income Per Share

Basic net income per share has been computed using the weighted average number of shares of common stock outstanding during each period. Diluted net income per share also includes the impact of our outstanding potential common shares, including options and restricted stock units. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net income per share.

The following table presents the components of the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Numerator
Net income	$	288	$	426	$	487	$	682
Denominator
Weighted average common shares outstanding, basic		15,076		12,284		14,983		12,224
Options to purchase common stock		665		728		646		858
Restricted stock units		39		14		45		24
Employee stock purchase plan		5		—		3		—
Weighted average common shares outstanding, diluted		15,785		13,026		15,677		13,106
Net income per share
Basic	$	0.02	$	0.03	$	0.03	$	0.06
Diluted	$	0.02	$	0.03	$	0.03	$	0.05

For each of the three and six months ended June 30, 2013, the effect of approximately 16,000 outstanding potential common shares were excluded from the calculation of diluted net income per share because they were anti-dilutive. For each of the three and six months ended June 30, 2012, the effect of approximately 22,000 outstanding potential common shares were excluded from the calculation of diluted net income per share because they were anti-dilutive.